Cashback apps in Germany are also squeezing tour operators and hotels

A sector study conducted in Germany has revealed that the scope of impact of cashback apps is not limited to travel agencies. According to the results, tour operators and the hotel business in destinations also suffer from this.

The main observation of the study is as follows: after receiving customer advisory service, the customer switches to online platforms promising a higher cash refund. In other words, a sale built through live consultation is lost at the final stage, and the hotel and tour operator do not receive the expected revenue from that customer's reservation.

This creates margin pressure, especially for businesses selling a tour package or accommodation in a specific destination: the value of the service is paid upfront, while the revenue is generated in another channel.

As the share of online booking platforms in Azerbaijan grows, it is of practical importance for hotels and tour operators to keep their own direct sales channels and price consistency under control.